Panasonic and Japans Changing Culture Essay

In Japan in 1918 Konosuke Matsushita founded Matsushita Electric a consumer electronics order which is cognize today as Panasonic. Panasonic has offices in 58 different countries and is regarded as one of the humanitys largest electronics companies. (Panasonic, 2013)Panasonic also many some separate Nipponese companies was established on a Confucian entertain ashes. The Confucian value system consists of three main elements correlative engagements, honesty and trueness. These elements form a volume of conventionalistic Japanese values. (Smits, 2010) Hofstede, eventide though his work has been criticised, recognised some meaning(a) aspects of Japanese encultu balancen. These aspects included high hesitation avoidance, high masculinity and a shake off towards collectivism. These aspects likewise contribute largely to traditionalistic Japanese values. These values were represented in such policies as lifetime participation and generous solitude bonuses. (Hofsted e, 2013) til now elaborations ar dynamic, they change over time. The study rouse in Japanese civilization occurred during the 1990s, which was in the main attributed to the change in perspective of the generation natural after 1964. This change was manifest in 1999 when Panasonic gave its rising employees a decision between different employment packages. The firstly package gave the employees a large loneliness bonus, subsidised housing and services and companionship social events. The second package gave the employees the very(prenominal) perks except instead of a retirement bonus a bigger starting line salary. The third package gave the employees an even larger still starting salary thus far none of the other benefits. In contradiction in terms to traditional values 41% of sweet employees chose the second package. (Hill, 2011) This shows a move out from high suspense avoidance which was triggered by an extend in average wealth and a move towards personal iden tity.The primary literary criticism of this generation was their lack of commitment to traditional Japanese values in resemblance with their p arnts. One of the more perceptible changes was a switch from a collectivist culture to a more individual culture. (Hill, 2011) It has been theorised that on that point is a correlation between scotch teaching and a disruption towards an individualistic society. This theory correlates with the article which states that a piss for the shift is the fact that the generation born after 1964 grew up in an economical every last(predicate)y richer society. This shift to a fault affected organisational loyalty in the form of people ever-changing jobs with greater frequency than ever before. (Reiner, 1991)This shift in the paradigm of Japanese heathen values has an effect on traditional values. The modernised value system in effect is polar opposite to traditional values which were achieved by a realize cultural shift. Which in turn insinuat es that the pull ahead the culture evolves the less tradition is left in the value system, if trends flow rate stick to constant. This shift in cultural dynamics changes the undercurrents of doing blood in Japan. A major change is difference to be computer memory of employees. This is collectible to the switch from collectivism to individualism and the mitigate in personal acknowledgement based on come with strata in conjunction with change magnitude company loyalty. The price reduction of this is companies ar going to baffle to urinate their HR departments and find ways to turn down employee turnover to reduce training costs. However if trends continue the average worker is going to have an step-upd understanding of a wide range of markets due to numerous flight changes which allow firms access to a greater procedure of ideas to cope with progressively dynamic billet conditions. If companies want to hone the new cultural principles of lowered hesitation avoi dance and the shift towards individualism they are going to have to come along new product development and add sustenance to research and development. (Reid, 1999) Panasonic have already place this and moving towards a greater heel of policies in this area. Panasonic have overly place the lack of traditional aspects in the business environment and have implemented policies such as bonuses based on consummation and the new employment package plans. (Hill, 2011) If uncertainty avoidance and individualism continue to make up to westmostern levels there may be an increase in start-up companies which would increase contestation in the market and possibly decrease the market share of existing companies. These changes could in any case have been influenced by a greater presence of western culture in spite of appearance Japanese society. However there could be the adverse effect of decreased productiveness attributed to a decrease in the number ofemployees having a personal iden tification with the company, decreased loyalty as well as a move away from interchangeable tariff and towards entitlement. This also works in the opposite direction and companies may non feel loyalty or obligation to Japanese employees and instead off-shore operations to lower wage countries in order to increase margins. (Reid, 1999)Between 1986 and 1989 there was a speedy acceleration of asset prices in Japan. This also caused uncontrolled credit expansion and funds supply in addition with overheat economic activity. Due to speculation and certitude of asset prices, the asset prices began to drop in 1991 and dispeld by 1992. The asset bubble collapse lasted for more than 10 years and was chiefly referred to as the lost decade for Japan. This also led to economic stagnation and as result of lower net income Japanese families decided to pay off debts which caused a deflation spiral. (The Economist, 2010)Since these events the Japanese deliverance has struggled to recover. no netheless though recent decisions by the Japanese political sympathies has caused the Nikkei to recover slightly it is currently round a third of the value it was in 1990. Currently the cash rate in Japan is 0% which inwardness that changing monetary policy cannot increase GDP. This means that for Japan to obtain a impregnable increase in GDP it has to increase its goods market. Japan has a debt to GDP ratio of 214% which is the highest in the world. (US CIA, 2013) Therefore an increase in consumption, investment or net exports is unavoidable to advance Japans economy. Panasonic as well as a number of other companies have realised this and has moved to encourage individualism. individuation encourages entrepreneurship which currently could boost the Japanese economy if successful new product development takes place. (Saito, 2000)The traditional Japanese culture was a benefit to Panasonic during the consummation of 1950 to 1980. A mathematical group orientated culture assiste d with real teamwork between employees allowing greater productivity indoors the workplace. Due to the element of reciprocal obligation in the Confucian value system policies such as lifetime employment and cheap housing were seen as gifts and in reciprocation of these gifts employees worked harder. Loyalty p defineed a largepart in structure strong business performance, this is because employees would stay in a business for the entirety of their career so they were able it learn all aspects of the business and better manage it. This amongst other factors also lead to identification with the business by employees, instead of thinking I am a web developer they would say I am from Panasonic. This identification boost employees to work harder so that their company would succeed. A high uncertainty avoidance allowed managers to further take a calculated take chances when the needed to, which reduced the companies liabilities. (Strath, 1996)However even though the traditional Japa nese culture was a benefit to Panasonic in the period of 1950 to 1980 it was a liability post 1989. Even though Confucian values encourage team work and other verificatory attributes it discourages individualism. During this time period due to the economic crisis in Japan Panasonic would if benefited more from an entrepreneurial drive towards new product development. A high uncertainty avoidance also meant that managers were not willing to take risks unless they knew what the outlet was going to be, due to the economic pressures and heightened tone of change within the business connection managers were less likely to change things in an environment where the totally way to hold out is change. During this time period business was enough more dynamic due to globalization and increased competitors which meant that Panasonic needed to change its strategy, besides managers did not know how to do this because they had only ever worked in the one company and only knew one way of do ing things. Panasonic alike other Japanese companies eventually had to lay people off and cut benefits due to economic conditions. These acts were seen as a dismissing employees loyalty and to a point traitorousness due to the strong identification with the company which caused productivity changes. (Huffman, 1997)In the last pecuniary year Panasonic recorded a button of 754 trillion dollars and forecasts a loss of 765 billion dollars next financial year. Even though there is no best culture for a business environment, Japanese companies including Panasonic are move towards integrating the current cultural changes into their practices in order to achieve greater efficiency andproductivity. The question is will Japanese culture continue along its current trends or do an about case? (Panasonic, 2013) savoir-fairesHill, Challes. 2011. Gobal pipeline Today. 7th Edition. McGraw-Hill. Pp 125-128 Hofstede, Greet. 2013. Japan Geert Hofstede. ONLINE uncommitted at http//geert-hofstede .com/japan.html. Accessed 24 haughty 2013. 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Smits, Gregory. 2010. Economic Thought in archaeozoic Modern Japan (Monies, Markets, and Finance in East Asia, 1600-1900). Edition. Brill Academic Pub. Strath, Bo. 1996. The composition of Labour Markets Modernity, Culture and Governance in Germany, Sweden, Britain and Japan (Routledge Explorations in Economic History). annotated version Edition. Routledge. United States Central Intelligence Agency. 2013. The World Factbook, Public Debt. ONLINE Available at https//www.cia.gov/ subroutine library/publications/the-world-factbook/rankorder/2186rank.html. Accessed 22 August 2013.